Queensland Pacific Metals Limited (ASX: QPM) ("QPM" or the "Company") is thrilled to announce that its wholly-owned subsidiary, QPME, has successfully assumed operating control of the Moranbah Project as of August 30, 2023. The transition occurred smoothly, without any interruptions to well field operations or deliveries of gas to customers. A first-class operating team is now in place, comprised of a core group of experienced Moranbah Project employees.
Strengthening Operational Footprint
With this strategic milestone, QPME is optimally positioned to begin implementing a comprehensive set of operating initiatives aimed at augmenting production, driving earnings growth, and instilling financier confidence in long-term gas supply, particularly concerning the TECH Project.
Production Growth Works Program
Aligned with QPM's previously published indicative guidance for the Moranbah Project, there is an expectation of a significant uptick in production, leading to substantial growth in EBITDA over the forthcoming 12 months. To achieve these objectives, QPM has outlined a multi-faceted plan requiring modest capital investment:
Existing Well Work Over: An initial campaign involving 9 wells is planned to start around October 2023, aimed at enhancing gas production.
Gas Capture at Anglo Mine Site: Installation of tie-in points at the adjacent Anglo mine site to capture gas currently being drained and flared. Three are anticipated to be completed by September 2023, with three more by December 2023.
New Well Drilling Program: Funded under the $80 million Dyno Nobel Development Funding Facility, drilling is set to commence in early 2024, with first gas output expected by mid-2024.
Infrastructure Optimization: Additional activities are also planned to streamline existing infrastructure for better efficiency and output.
QPME CEO David Wrench commented,
“We are delighted that, following completion of the Moranbah Project acquisition last Friday, we have now successfully completed transfer of operatorship. We have a highly motivated, experienced team in control of the Project who have a clear vision of what needs to be done to significantly grow the business into 2024."